PROTECTING YOUR LAW FIRM AGAINST CYBER THREATS
CYBER THREATS TO LAW FIRMS ARE REAL
Law firms store highly-sensitive information that is likely to be of interest to a hacker. As a result, more and more law firms are experiencing cyber security breaches, which are expensive and time-consuming. Cyber insurance is a critical coverage that fills gaps not otherwise covered by other policies such as professional liability, crime, property and general liability.
CYBER THREATS ARE REAL
According to the ABA 2022 TECHREPORT, 27% of responding law firms reported having experienced a security breach; another 25% indicated they don’t know if their firm has ever experienced a breach.
CYBER SECURITY BREACHES ARE EXPENSIVE
According to the ABA 2019 TECHREPORT, consequences of security incidents include consulting fees for repair (37%), downtime/loss of billable hours (35%), expense for replacing hardware/software (20%), destruction or loss of files (15%), and many negative outcomes.
Cyber insurance policies cover:
Law firms are frequent targets of ransom attacks which can be expensive and time consuming. Cyber insurance policies typically cover ransom payments and associated costs to get the firm up and running.
First-party (the law firm) cyber-related losses include breach notification, credit monitoring, fines and penalties for not complying with notification laws, forensic work, data restoration and enhancement, cyber business interruption, bricking, retention and use of a breach coach, and PR costs associated with a breach.
Third-party (employees, clients, and vendors) cyber-related losses include employee breach of privacy, financial harm to vendors, financial loss to clients as a result of a data breach, and media liability such as libel, slander, and trademark infringement.
SOCIAL ENGINEERING FRAUD
Social engineering fraud means a fraudulent act by a third party that misleads any insured and directly results in your firm’s – or your clients’ – money or securities being transferred, disbursed, paid, delivered, altered, corrupted or lost. Typically, social engineering schemes take the form of fraudulent wire requests.
Gemini Risk Partners works with every insurer writing cyber liability insurance for law firms.